Connecticut Ratification of Oil and Gas Lease (To Permit Pooling/Unitization)

State:
Multi-State
Control #:
US-OG-1100
Format:
Word; 
Rich Text
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Description

This form is a ratification of an oil and gas lease to permit pooling/unitization.

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FAQ

In a few words, a pooling clause is written into a lease. This oil and gas clause allows the leased premises to be combined with other lands to form a single drilling unit. It's not uncommon for there to be a pool of oil or gas under numerous parcels of land.

Pooling is the combining of all oil and gas interests in a drilling unit. In most cases, the owners of oil and gas rights in a unit sign a lease with a developer that allows for pooling. If there is more than one developer in a unit, they voluntarily agree on a development plan.

The declaration shows the boundaries of the pooling unit and identifies all the landowners and amount of property each landowner actually has in the unit.

What is the granting clause? The granting clause is the clause under which the owner of the oil and gas rights leases the oil and gas rights to the oil and gas company along with the right to develop the oil and gas on a specifically described piece of real estate.

in clause (or shutin royalty clause) traditionally allows the lessee to maintain the lease by making shutin payments on a well capable of producing oil or gas in paying quantities where the oil or gas cannot be marketed, whether due to a lack of pipeline connection or otherwise.

Declaration of a Pooled Unit Such a document delineates what portions of the leases are included in a unit. It also places third parties on notice. ing to the terms of the leases, any production from the wells in the pooled unit must maintain underlying leases or portions if this is applicable.

To ?ratify? a lease means that the landowner and oil & gas producer, as current lessor and lessee of the land, agree (or re-agree) to the terms of the existing lease.

Unitization is a process in which two or more operating companies combine their interests in a single unitized area, allowing them to operate their wells together. Texas' standards include determining the boundaries of the unitized area and how production will be divided amongst the participating companies.

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Connecticut Ratification of Oil and Gas Lease (To Permit Pooling/Unitization)